The European Commission has recently approved a €2.98 billion scheme to promote green district heating based on renewable energy and waste heat in Germany.
The measure will contribute to the implementation of Germany’s National Energy and Climate Plan, and in particular the EU’s target to achieve climate neutrality by 2050.
The scheme is expected to support the installation of approximately 681MW of renewable heat-generation capacity per year, reducing greenhouse gas (GHG) emissions by approximately 4 million tonnes of carbon dioxide (CO2)/year.
In June 2022, Germany notified the commission about its intention to introduce such a scheme, which will now run until August 30, 2028.
Executive vice-president Margrethe Vestager, who is in charge of competition policy, said:
“This €2.98 billion scheme will contribute to greening the district heating sector in Germany by supporting the construction of more efficient district heating systems, and the decarbonisation of existing ones.”
Feasibility studies and transformation plans for the construction and the decarbonisation of district heating networks will be supported. District heating network operators will also be able to receive investment aid for:
- The construction of new district heating systems with a share of renewable and waste heat of at least 75%;
- The decarbonisation and upgrade of existing district heating systems to operate on the basis of renewable energy and waste heat;
- The installation of renewable heat and solar thermal generation facilities, heat pumps and heat reservoirs, as well as the integration of waste heat in district heating systems.
In addition, the commission said, district heating network operators will be able to receive operating aid for the generation of renewable heat through solar thermal installations and heat pumps.
The scheme, which was approved under EU state aid rules, will enable Germany to considerably decrease its emissions in the heating sector, the vice-president added.
The commission found that the aid is necessary and appropriate for the decarbonisation of the district heating sector in Germany, and that it has an “incentive effect”.